Providence Iway Tower Project Seeks $15M State Subsidies After Scaleback

PROVIDENCE, R.I. — The developer behind a proposed residential tower along Providence's Iway waterfront is turning to Rhode Island taxpayers for support. Initially unveiled in fall 2016 with plans for three mixed-use towers, the project has been scaled back to a single structure with a total cost now estimated at $220 million, according to project attorney Jeff Padwa. Fane, the New York-based developer, announced in mid-2017 it would seek the maximum $15 million from the state's Rebuild RI fund administered by RI Commerce, marking a reversal from its original stance against incentives.

The Iway waterfront, part of Providence's post-industrial revitalization along the Providence River, has seen uneven progress amid economic shifts. Commission Chair Joe Azrack pegged the project cost at about $200 million during a recent meeting, highlighting discrepancies in estimates. Beyond state subsidies, Fane is pursuing tens of millions in tax abatements through a 20-year tax stabilization agreement with the City of Providence, a move that has drawn scrutiny over the tower's financial viability nine months after the scaled-down proposal.

This push for public backing comes as Providence balances waterfront growth with fiscal caution. The single tower would include residential units and retail space, aiming to boost the area's appeal near the downtown core. However, questions persist about market demand, with no updates on construction timelines as of 2026. Local stakeholders, including city officials, continue to weigh the subsidies against potential economic benefits for Rhode Island's capital.